Society & Culture

No longer able to use credit facility on Debit Cards

Society & Culture

Posted by: terribrown

29th Apr 2010 03:37pm

As of 15 April 2010 Big W does not allow us to use our Visa debit card as a credit facility.
They say it is to recoup costs charged by the banks but they are still using credit cards -so that does not make sense.
Banks have always encouraged us to use the 'credit' facility so as not to use up all our allowable Eftpos transactions in any month.
When I complained to their Head Office I was told that the other large retailers will follow them in this. Any other opinions on this?


ApHeX
  • 20th Nov 2010 08:16pm

The Banks charge each retail outlet 4cents every time the credit option is used on a debit card. However retail outlets are not charged when customers use a credit card. If each Big W has, say, 500 customers a day use credit on a debit card that equals $20 a day. Times that by the number of Big W's and it ends up a couple of thousand each day the company is charged. Over the course of a year it equates to over half a million dollars being paid to the banks by Big W simply to have a credit option available. The question now to be asked is will these savings be passed through to customers... Also, Debit cards were introduced as a way of having a card that can be used by people who don't like credit cards at places where only credit is available. Examples include online, Tax agencies, Govt departments etc... This nifty feature was abused by people looking for convenience. The banks encouraged their use because while it looks like people save money, it opens them up to overdraw fees and fees incurred at places that charge to use credit instead of savings or cheque. Now retailers are being made to look like the bad guys when in actual fact the banks are charging fees which are making retailers raise prices to cover the costs. It won't be long before all retailers take a stand and debit cards will be used for original purpose. I bank with St. George freedom accounts and they have unlimited EFTPOS transactions. Shop around and the banks will soon take notice.


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